Types of Unemployment

Frictional Unemployment

Occurs when workers are moving from one job to another
Is considered a healthy part of an economy
Is a signal that new jobs in new industries are becoming available

Structural Unemployment

Unemployment that occurs as a result of changes in technology or in the way the economy is structured
Technological advances and shifts in consumers' tastes can result in the change or decline of entire industries
Some industries decline and even disappear as natural resources in a region are used up

Seasonal Unemployment

Unemployment that results from seasonal fluctuations in the economy
Result of regular occurences such as holidays, the school year, harvest schedules, and industry production schedules
Agricultural workers are particularly affected by this type of unemployment

Cyclical Unemployment

Unemployment resulting from recessions and economic downturns
Is the most harmful type of unemployment
When sales decline, producers reduce output and lay off workers

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